MOREHEAD CITY — A Carteret County charter school is hoping the New Year will bring a close to a first semester that was full of challenges to keep the school open.

Just before the Christmas break, attorneys for Cape Lookout High School in Morehead City and the State Board of Education reached an agreement on the charter conditions for the school and Administrative Law Judge Donald Overby ordered that the state release funds to the school.

Barbara Johnson, chairman of the school’s board of directors, said the school had signed a two-year charter renewal granted by the state Board of Education in November but had a problem with conditions placed on the charter and the possible revocation without appeal.

“All the stipulations came with automatic revocation and that is beyond the law. It takes away you’re right to a hearing and no one was willing to accept that,” Johnson said.

The new agreement ensures an appeal and hearing process.

The new agreement now goes back to the state Board of Education for final approval of the charter and conditions.

After months of challenges to keep the school open, Johnson said they are cautious about acknowledging final approval of the charter but Johnson said they are beginning to see “light at the end of the tunnel.”

The first semester of school ends Jan.17 and Johnson said they are holding an open house at the school on Jan. 10 from 5:30 p.m. to 7 p.m. for parents and students interested in seeing if the school would be a good fit for them going into the second semester.

Johnson said the school is open to all students and offers a small class size and caring environment with more one-on-one attention that may be an alternative to the traditional school environment.

Johnson said they currently have students attending from Carteret, Craven and Pitt counties.

“We have a purpose, we have value and we’re not going to let anyone take that away,” she said.

The fate of the school’s charter came into question earlier this year due to concerns over the school’s low test scores, financial situations and management by the school’s board of directors. The school has worked to bring up academic performance, taking on fundraising activities and reorganized its board while fighting the state to keep its charter.

The school opened this fall despite the uncertainty and operated without state funds, including pay for teachers.

Johnson said the school received its first allocation from the state just before the Christmas break in the amount of $159,000.

She said the school’s board of directors has to clarify with the state what the funding is for and will then meet to determine the budget and how to compensate the teachers.